Payroll Giving

Give your employees the opportunity to help children break free from poverty while they work.
 

You can give your employees the option of making donations to ChildFund directly from their pay.

Benefits to your company of payroll giving

1. Raise your business profile
2. Boost your employee morale and team spirit
3. You are in control - you choose how payroll giving is run in your workplace
4. It's easy - the Inland Revenue's ir-File Service which saves time and paperwork has been updated to include payroll giving and tax credits for payroll donations
5. It's flexible - individuals can choose how often and how much they donate
6. It's no fuss - once it's set up your employees don't have to do anymore
7. Your employees get their tax credit via PAYE immediately - no waiting until the end of the tax year and filling out forms

Eligible companies
Only employers who file their employer monthly schedules and PAYE income payment forms electronically can choose to offer payroll giving in their workplace.

New Zealand companies can offer payroll giving in their workplace from 7 January 2010.

How the tax credit works
Here's an example from the IRD:

Tax credits for all donations are calculated when a donation is made using payroll giving and gives immediate tax relief as a reduction in the employee's PAYE. The amount of the tax credit for payroll donations is 33.33 cents for each dollar donation.

Donation	$10.00
Tax credit for payroll donations	$3.33

The tax credit for the payroll donation amount is deducted from the employee's gross PAYE:

Gross PAYE	$150.00
Tax credit for payroll donations	$3.33 (10 x 33.33%)
Net PAYE	$146.67

For more information please visit the IRD payroll giving website.

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